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Haycarb records 1.08 bn PAT

The Sri Lankan multinational Haycarb PLC reported revenue of Rs. 20.9 billion, profit before tax of Rs. 1.35 billion and profit after tax of Rs1.08 billion for financial year 2018/19. The earnings per share of equity holders of the company increased to Rs. 32.16 for the year.

The Chairman of Haycarb PLC and its parent company Hayleys PLC, Mohan Pandithage said that Haycarb posted noteworthy results through the execution of its strategic plan in a year of significant challenges in the raw material supply chain for the activated carbon business and adverse local business environment for the environmental engineering segment.

Haycarb PLC Managing Director, Rajitha Kariyawasan stated that the activated carbon business faced shortages and high cost of raw material in Thailand while the effects of shortages and high prices experienced in Sri Lanka and India up to the third quarter of the year impacted the operations negatively.

The availability of raw material in Indonesia continued to be stable during the year under review contributing significantly to the results. He said that the retention of existing suppliers and broad basing the procurement network of the coconut shell charcoal supply chain in key coconut growing countries in the region, remains one of the most important initiatives of the Company in the short to the medium term.

Haycarb also promoted sustainable business practices by establishing environment friendly charcoaling technology, through the Haritha Angara project in Sri Lanka and the Vertical Charcoal Kiln Project in Thailand. He added that the productivity improvement initiatives launched under the Lean Operational platform reduced costs and increased value to its loyal customers.

Kariyawasan further said, “The initiatives launched to acquire new customer accounts, access new geographies, penetrate into new market segments and enhance its value added product portfolio backed by successful new product development projects showed positive results and contributed significantly to the performance of the activated carbon business. Haycarbs’ focus on quality assurance systems is the backbone

on which the company was able to provide innovative and technically superior solutions to its customers across all market & application segments.”

He noted that the environment engineering arm Puritas (Pvt.) Ltd., faced significant challenges both locally and regionally due to uncertainties in the external environment but posted satisfactory results consolidating its position as a superior provider of water and waste water purification solutions.

The outlook for the environmental engineering sector remains stable with the increased awareness and growth for water and waste water purification systems in Sri Lanka and in the region.

The ability to capitalize on these new opportunities has been strengthened through its strategic collaboration with Veolia Water for large scale water projects.